Jim Gore of THOR Wealth Management traces the history of sound money from Rome’s silver debasement to the US departure from the gold standard and explains why gold remains a barometer of fiscal and monetary policy quality today. He also examines how the rise of democratic socialism threatens currency stability, using Venezuela’s collapse in oil production as a cautionary contrast to America’s capitalist gains.
Jim discusses why we use the term sound money.
Rome is a good example of sound money collapsing.
A more recent example of a collapse of sound money is in the United States.
Gold rising is a reflection of loose monetary and fiscal policy.
Democratic Socialists of America website is promoting extreme policy of spending and programs. This would lead to huge increases in fiscal spending and inturn more inflation.
Oil production plummeted under socialism in Venezuela.
We have seen the opposite in the USA under capitalism where production of oil has increased in the USA.
The risk with a rise in socialism in politics is further inflation. Its important to make sure that your portfolio is protected from loose monetary and fiscal policy.
At THOR Wealth Management, our investment management strategy builds diversified portfolios that can protect against inflation.
